BRENTWOOD, Tenn.--(BUSINESS WIRE)--Nov. 4, 2014-- Delek Logistics Partners, LP (NYSE: DKL) (“Delek Logistics”) today announced its financial results for the third quarter 2014. For the three months ended September 30, 2014, Delek Logistics reported net income attributable to all partners of $15.1 million, or $0.59 per diluted limited partner unit. This compares to net income attributable to all partners of $12.5 million, or $0.51 per diluted limited partner unit in the third quarter 2013. Distributable cash flow was $17.7 million in the third quarter 2014, compared to $13.4 million in the prior-year period.
Uzi Yemin, Chairman and Chief Executive Officer of Delek Logistics’ general partner, remarked: “We increased our distributable cash flow by approximately 32% on a year-over-year basis as our results benefited from increased volumes in our Lion Pipeline System, improved margins in the west Texas wholesale business and acquisitions we have completed over the past year.”
Yemin continued, “We are in the process of improving the efficiency of our Tyler, Texas terminal and we purchased our third terminal in east Texas in October. These steps will allow us to better support the expected Delek US expansion of its Tyler refinery that Delek US anticipates to be completed in the first quarter 2015. We believe we are on track to meet our previously discussed goal from the second quarter to add approximately $25 million to $35 million of annual incremental EBITDA to our operations by the end of the first quarter 2015, which includes an anticipated increase in EBITDA from the Paline pipeline in 2015. Our distributable cash flow coverage ratio was 1.4 times for the third quarter and we believe we have the financial flexibility to support continued growth in both our operations and distributions going forward.”
Distribution and Liquidity Update
On October 24, 2014, Delek Logistics declared a quarterly cash distribution for the third quarter of approximately $12.4 million, or $0.490 per limited partner unit. This distribution, which is payable on November 14, 2014, equates to $1.96 per limited partner unit on an annualized basis. This represents a 3.2 percent increase from the second quarter 2014 distribution of $0.475 per limited partner unit, or $1.90 per limited partner unit on an annualized basis, and a 21.0 percent increase over Delek Logistics’ third quarter 2013 distribution of $0.405 per limited partner unit, or $1.62 per limited partner unit annualized.
As of September 30, 2014, Delek Logistics had a cash balance of $0.7 million and total debt was $230.0 million. Availability under the $400.0 million credit facility was $157.0 million.
Financial Results
Results in the third quarter 2014 benefited from several acquisitions that were completed during the past year. Additional information regarding the acquisitions is discussed in the segment review. For accounting purposes, the expenses from operations prior to the Tyler and El Dorado tank farm and product terminal acquisitions in late July 2013 and February 2014, respectively, are attributed to their respective predecessor periods. For purposes of comparison, results discussed in the text of this press release exclude predecessor costs during the respective periods. However, these costs are shown in the financial statements and a reconciliation is provided in the tables attached to this release.
Revenue for the third quarter 2014 was $228.0 million and contribution margin was $23.7 million, which compares to revenue of $243.3 million and a contribution margin of $18.4 million in the third quarter 2013. Total operating expenses were $10.2 million compared to $6.6 million in the third quarter 2013. Operating expenses increased year-over-year primarily due to acquisitions and employee related expenses. General and administrative expenses, which were $2.5 million for the third quarter 2014, compared to $1.8 million in the prior-year period, increased primarily due to acquisitions. For the third quarter 2014, earnings before interest, taxes, depreciation and amortization, (“EBITDA”) was $21.2 million, which is an increase from $16.6 million in the prior year period. On a sequential basis, overall financial performance declined from a record level in the second quarter 2014 primarily due to a lower gross margin per barrel in the west Texas business.
Wholesale Marketing and Terminalling Segment
Contribution margin for the Wholesale Marketing and Terminalling segment was $8.6 million in the third quarter 2014, compared to $7.7 million in the third quarter 2013.
In west Texas, throughput was 17,923 barrels per day compared to 18,966 barrels per day in the third quarter 2013. However, the wholesale gross margin per barrel in west Texas increased on a year-over-year basis to $2.20 and included approximately $1.2 million, or $0.74 per barrel from renewable identification numbers (RINs) generated in the quarter. During the third quarter 2013, the wholesale gross margin per barrel was $1.63 and included $2.0 million from RINs, or $1.13 per barrel. On a sequential basis, the gross margin per barrel declined from a record level of $6.52 in the second quarter 2014 as a refinery in the area returned to production after a turnaround performed during the second quarter 2014, resulting in a less favorable supply/demand balance in the third quarter 2014.
The Tyler, Texas terminal purchased in late July 2013, the North Little Rock, Arkansas terminal purchased in October 2013 and the El Dorado, Arkansas terminal purchased in February 2014, also contributed to this increase in contribution margin from the third quarter 2013. Terminalling throughput volume of 95,024 barrels per day during the quarter increased on a year-over-year basis from 74,024 barrels per day in the third quarter 2013. During the third quarter 2014, volume under the east Texas marketing agreement with Delek US was 59,659 barrels per day compared to 61,698 barrels per day during the third quarter 2013.
Pipelines and Transportation Segment
The Pipeline and Transportation segment’s third quarter 2014 contribution margin of $15.1 million improved from $10.8 million in the third quarter 2013. This increase is primarily attributed to storage fees associated with the El Dorado tank farm purchased in February 2014 and the Tyler tank farm purchased in late July 2013. Also, volumes on the Lion Pipeline System were higher on a year-over-year basis as Delek US’ El Dorado refinery increased throughput following the turnaround that it completed during the first quarter 2014. Crude oil (non-gathered) transported on the Lion Pipeline system increased to 57,254 barrels per day in the third quarter 2014 from 47,675 barrels per day in the prior year period. Refined product volume on this system experienced a similar increase.
Recent Acquisitions
On October 1, 2014 an affiliate of Delek Logistics purchased a set of logistics assets from affiliates of Magellan Midstream Partners, L.P. for $11.1 million in cash, including $1.1 million of inventory. These assets include a light products terminal in Mount Pleasant, Texas, a light products storage facility in Greenville, Texas, and a pipeline connecting these two locations. The transaction was financed with cash on hand and borrowings under Delek Logistics’ revolving credit facility. By the end of 2015, these assets are expected to achieve annualized earnings before interest, taxes, depreciation and amortization (“EBITDA”) of approximately $1.4 million.
Third Quarter 2014 Results | Conference Call Information
Delek Logistics will hold a conference call to discuss its third quarter 2014 results on November 5, 2014 at 9:00 a.m. Central Time. Investors will have the opportunity to listen to the conference call live by going to www.DelekLogistics.com. Participants are encouraged to register at least 15 minutes early to download and install any necessary software. For those who cannot listen to the live broadcast, a telephonic replay will be available through February 6, 2015 by dialing (855) 859-2056, passcode 17066617. An archived version of the replay will also be available at www.DelekLogistics.com for 90 days.
Investors may also wish to listen to Delek US’ (NYSE: DK) third quarter 2014 earnings conference call on November 6, 2014 and review Delek US’ earnings press release. Market trends and information disclosed by Delek US may be relevant to Delek Logistics, as it is a consolidated subsidiary of Delek US. Investors can find information related to Delek US and the timing of its earnings release online by going to www.DelekUS.com.
About Delek Logistics Partners, LP
Delek Logistics Partners, LP, headquartered in Brentwood, Tennessee, was formed by Delek US Holdings, Inc. (NYSE: DK) to own, operate, acquire and construct crude oil and refined products logistics and marketing assets.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains “forward-looking” statements within the meaning of the federal securities laws. These statements contain words such as “possible,” “believe,” “should,” “could,” “would,” “predict,” “plan,” “estimate,” “intend,” “may,” “anticipate,” “will,” “if,” “expect” or similar expressions, as well as statements in the future tense, and can be impacted by numerous factors, including the fact that a substantial majority of Delek Logistics’ contribution margin is derived from Delek US Holdings, thereby subjecting us to Delek US Holdings’ business risks; risks relating to the securities markets generally; risks relating to the age of our assets and operational hazards of our assets including, without limitation, releases, spills and other hazards inherent in transporting and storing crude oil and intermediate and finished petroleum products; the impact of adverse market conditions affecting the business of Delek Logistics; adverse changes in laws including with respect to tax and regulatory matters and other risks as disclosed in our annual report on Form 10-K, quarterly reports on Form 10-Q and other reports and filings with the United States Securities and Exchange Commission. There can be no assurance that actual results will not differ from those expected by management or described in forward-looking statements of Delek Logistics. Delek Logistics undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or which Delek Logistics becomes aware of, after the date hereof.
Factors Affecting Comparability:
The following tables present financial and operational information for the three and nine months ended September 30, 2014 and 2013. On July 26, 2013, Delek Logistics acquired from Delek US substantially all of the active storage tanks and the product terminal at Delek US’ Tyler, Texas refinery (the “Tyler Assets”). On February 10, 2014, Delek Logistics acquired substantially all of the active storage tanks and product terminal located at Delek US’ El Dorado refinery (the “El Dorado Assets”). Both the Tyler Assets and El Dorado Assets were accounted for as transfers between entities under common control. Accordingly, the accompanying financial statements of the Partnership have been retrospectively adjusted to include the historical results of the Tyler Assets and El Dorado Assets. For all periods presented through July 26, 2013, the date of the Tyler Asset acquisition, and February 10, 2014, the acquisition date of the El Dorado Assets, the retrospective adjustments were made to the financial statements. The historical results of the Tyler and El Dorado assets, prior to each acquisition date, are referred to as the “Predecessors.”
Non-GAAP Disclosures:
EBITDA and distributable cash flow are non-U.S. GAAP supplemental financial measures that management and external users of our combined financial statements, such as industry analysts, investors, lenders and rating agencies, may use to assess:
- Delek Logistics’ operating performance as compared to other publicly traded partnerships in the midstream energy industry, without regard to historical cost basis or, in the case of EBITDA, financing methods;
- the ability of our assets to generate sufficient cash flow to make distributions to Delek Logistics’ unitholders;
- Delek Logistics’ ability to incur and service debt and fund capital expenditures; and
- the viability of acquisitions and other capital expenditure projects and the returns on investment of various investment opportunities.
Delek Logistics believes that the presentation of EBITDA and distributable cash flow provide useful information to investors in assessing its financial condition, its results of operations and cash flow its business is generating. EBITDA and distributable cash flow should not be considered as alternatives to net income, operating income, cash from operations or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. EBITDA and distributable cash flow have important limitations as analytical tools because they exclude some, but not all items that affect net income and net cash provided by operating activities. Additionally, because EBITDA and distributable cash flow may be defined differently by other partnerships in its industry, Delek Logistics’ definitions of EBITDA and distributable cash flow may not be comparable to similarly titled measures of other partnerships, thereby diminishing their utility. Please see the tables below for a reconciliation of EBITDA and distributable cash flow to their most directly comparable financial measures calculated and presented in accordance with U.S. GAAP.
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
| ($ in thousands) |
|
|
2014 |
|
|
2013(2) |
|
|
2014(1)
|
|
|
2013(2)
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
$ |
15,085 |
|
|
|
$ |
9,485 |
|
|
|
$ |
50,568 |
|
|
|
$ |
23,329 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income taxes |
|
|
177 |
|
|
|
307 |
|
|
|
605 |
|
|
|
547 |
|
| Depreciation and amortization |
|
|
3,749 |
|
|
|
3,141 |
|
|
|
10,758 |
|
|
|
9,966 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
1,194 |
|
|
|
6,551 |
|
|
|
2,763 |
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
14,127 |
|
|
|
$ |
68,482 |
|
|
|
$ |
36,605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
$ |
20,129 |
|
|
|
$ |
17,397 |
|
|
|
$ |
64,929 |
|
|
|
$ |
29,611 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
668 |
|
|
|
622 |
|
|
|
2,002 |
|
|
|
1,956 |
|
| Amortization of deferred financing costs |
|
|
(317 |
) |
|
|
(187 |
) |
|
|
(951 |
) |
|
|
(560 |
) |
| Accretion of asset retirement obligations |
|
|
(58 |
) |
|
|
(20 |
) |
|
|
(267 |
) |
|
|
(169 |
) |
| Deferred taxes |
|
|
(29 |
) |
|
|
(59 |
) |
|
|
(81 |
) |
|
|
(42 |
) |
| Loss on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
(74 |
) |
|
|
— |
|
| Unit-based compensation expense |
|
|
(75 |
) |
|
|
(68 |
) |
|
|
(196 |
) |
|
|
(179 |
) |
| Changes in assets and liabilities |
|
|
(1,484 |
) |
|
|
(5,059 |
) |
|
|
(4,036 |
) |
|
|
2,678 |
|
| Income tax expense |
|
|
177 |
|
|
|
307 |
|
|
|
605 |
|
|
|
547 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
1,194 |
|
|
|
6,551 |
|
|
|
2,763 |
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
14,127 |
|
|
|
$ |
68,482 |
|
|
|
$ |
36,605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
21,237 |
|
|
|
$ |
14,127 |
|
|
|
$ |
68,482 |
|
|
|
$ |
36,605 |
|
| Less: Cash interest expense, net |
|
|
1,909 |
|
|
|
1,008 |
|
|
|
5,600 |
|
|
|
2,203 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
477 |
|
|
|
2,280 |
|
|
|
2,074 |
|
|
|
7,526 |
|
| Less: Capital improvement expenditures |
|
|
350 |
|
|
|
421 |
|
|
|
686 |
|
|
|
2,314 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
463 |
|
| Less: Income tax expense |
|
|
177 |
|
|
|
307 |
|
|
|
605 |
|
|
|
547 |
|
| Add: Non-cash unit-based compensation expense |
|
|
75 |
|
|
|
68 |
|
|
|
196 |
|
|
|
179 |
|
| Less: Amortization of deferred revenue |
|
|
77 |
|
|
|
77 |
|
|
|
230 |
|
|
|
154 |
|
| Less: Amortization of unfavorable contract liability |
|
|
668 |
|
|
|
622 |
|
|
|
2,002 |
|
|
|
1,956 |
|
| Distributable cash flow |
|
|
$ |
17,654 |
|
|
|
$ |
9,480 |
|
|
|
$ |
57,481 |
|
|
|
$ |
22,547 |
|
| |
|
(1) The information presented includes the results of operations of the El Dorado Predecessor. Prior to the El Dorado acquisition on February 10, 2014, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
| |
|
(2) The information presented includes the results of operations of the Tyler and El Dorado Predecessors. Prior to the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| ($ in thousands) |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets(1)
1/1/2014-2/10/2014
|
|
|
Nine Months Ended
September 30, 2014
|
| |
|
|
|
|
|
|
El Dorado Predecessor |
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
51,511 |
|
|
|
$ |
(943 |
) |
|
|
$ |
50,568 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
605 |
|
| Depreciation and amortization |
|
|
10,644 |
|
|
|
114 |
|
|
|
10,758 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(829 |
) |
|
|
$ |
68,482 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
65,758 |
|
|
|
$ |
(829 |
) |
|
|
$ |
64,929 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
2,002 |
|
|
|
— |
|
|
|
2,002 |
|
| Amortization of debt issuance costs |
|
|
(951 |
) |
|
|
— |
|
|
|
(951 |
) |
| Accretion of asset retirement obligations |
|
|
(273 |
) |
|
|
6 |
|
|
|
(267 |
) |
| Deferred taxes |
|
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
| Loss on asset disposals |
|
|
(74 |
) |
|
|
— |
|
|
|
(74 |
) |
| Unit-based compensation expense |
|
|
(196 |
) |
|
|
— |
|
|
|
(196 |
) |
| Changes in assets and liabilities |
|
|
(4,030 |
) |
|
|
(6 |
) |
|
|
(4,036 |
) |
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
605 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
6,551 |
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(829 |
) |
|
|
$ |
68,482 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
69,311 |
|
|
|
$ |
(829 |
) |
|
|
$ |
68,482 |
|
| Less: Cash interest expense, net |
|
|
5,600 |
|
|
|
— |
|
|
|
5,600 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
1,990 |
|
|
|
84 |
|
|
|
2,074 |
|
| Less: Capital improvement expenditures |
|
|
593 |
|
|
|
93 |
|
|
|
686 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Less: Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
605 |
|
| Add: Non-cash unit-based compensation expense |
|
|
196 |
|
|
|
— |
|
|
|
196 |
|
| Less: Amortization of deferred revenue |
|
|
230 |
|
|
|
— |
|
|
|
230 |
|
| Less: Amortization of unfavorable contract liability |
|
|
2,002 |
|
|
|
— |
|
|
|
2,002 |
|
| Distributable cash flow |
|
|
$ |
58,487 |
|
|
|
$ |
(1,006 |
) |
|
|
$ |
57,481 |
|
| |
|
(1) The information presented is for the nine months ended September 30, 2014, disaggregated to present the results of operations of the El Dorado Predecessor. Prior to the completion of the El Dorado acquisition on February 10, 2014, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler Terminal
and Tank
Assets(1)
|
|
|
El Dorado
Terminal and
Tank Assets(1)
|
|
|
Three Months
Ended
September 30,
2013
|
| ($ in thousands) |
|
|
|
|
|
|
Tyler Predecessor |
|
|
El Dorado
Predecessor
|
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
12,545 |
|
|
|
$ |
(1,159 |
) |
|
|
$ |
(1,901 |
) |
|
|
$ |
9,485 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
307 |
|
|
|
— |
|
|
|
— |
|
|
|
307 |
|
| Depreciation and amortization |
|
|
2,600 |
|
|
|
244 |
|
|
|
297 |
|
|
|
3,141 |
|
| Interest expense, net |
|
|
1,194 |
|
|
|
— |
|
|
|
— |
|
|
|
1,194 |
|
| EBITDA |
|
|
$ |
16,646 |
|
|
|
$ |
(915 |
) |
|
|
$ |
(1,604 |
) |
|
|
$ |
14,127 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
19,907 |
|
|
|
$ |
(908 |
) |
|
|
$ |
(1,602 |
) |
|
|
$ |
17,397 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
622 |
|
|
|
— |
|
|
|
— |
|
|
|
622 |
|
| Amortization of deferred financing costs |
|
|
(187 |
) |
|
|
— |
|
|
|
— |
|
|
|
(187 |
) |
| Accretion of asset retirement obligations |
|
|
(10 |
) |
|
|
(8 |
) |
|
|
(2 |
) |
|
|
(20 |
) |
| Deferred taxes |
|
|
(59 |
) |
|
|
— |
|
|
|
— |
|
|
|
(59 |
) |
| Unit-based compensation expense |
|
|
(68 |
) |
|
|
— |
|
|
|
— |
|
|
|
(68 |
) |
| Changes in assets and liabilities |
|
|
(5,060 |
) |
|
|
1 |
|
|
|
— |
|
|
|
(5,059 |
) |
| Income tax expense |
|
|
307 |
|
|
|
— |
|
|
|
— |
|
|
|
307 |
|
| Interest expense, net |
|
|
1,194 |
|
|
|
— |
|
|
|
— |
|
|
|
1,194 |
|
| EBITDA |
|
|
$ |
16,646 |
|
|
|
$ |
(915 |
) |
|
|
$ |
(1,604 |
) |
|
|
$ |
14,127 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
16,646 |
|
|
|
$ |
(915 |
) |
|
|
$ |
(1,604 |
) |
|
|
$ |
14,127 |
|
| Less: Cash interest expense, net |
|
|
1,008 |
|
|
|
— |
|
|
|
— |
|
|
|
1,008 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
1,195 |
|
|
|
227 |
|
|
|
858 |
|
|
|
2,280 |
|
| Less: Capital improvement expenditures |
|
|
93 |
|
|
|
66 |
|
|
|
262 |
|
|
|
421 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Less: Income tax expense |
|
|
307 |
|
|
|
— |
|
|
|
— |
|
|
|
307 |
|
| Add: Non-cash unit-based compensation expense |
|
|
68 |
|
|
|
— |
|
|
|
— |
|
|
|
68 |
|
| Less: Amortization of deferred revenue |
|
|
77 |
|
|
|
— |
|
|
|
— |
|
|
|
77 |
|
| Less: Amortization of unfavorable contract liability |
|
|
622 |
|
|
|
— |
|
|
|
— |
|
|
|
622 |
|
| Distributable cash flow |
|
|
$ |
13,412 |
|
|
|
$ |
(1,208 |
) |
|
|
$ |
(2,724 |
) |
|
|
$ |
9,480 |
|
| |
|
(1) The information presented is for the three months ended September 30, 2013, disaggregated to present the results of operations of the Partnership and the Tyler and El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Reconciliation of Amounts Reported Under U.S. GAAP |
| |
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler Terminal
and Tank
Assets(1)
|
|
|
El Dorado
Terminal and
Tank Assets(1)
|
|
|
Nine Months
Ended
September 30,
2013
|
| ($ in thousands) |
|
|
|
|
|
|
Tyler Predecessor |
|
|
El Dorado
Predecessor
|
|
|
|
|
| Reconciliation of EBITDA to net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
36,505 |
|
|
|
$ |
(6,853 |
) |
|
|
$ |
(6,323 |
) |
|
|
$ |
23,329 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income tax expense |
|
|
547 |
|
|
|
— |
|
|
|
— |
|
|
|
547 |
|
| Depreciation and amortization |
|
|
7,324 |
|
|
|
1,750 |
|
|
|
892 |
|
|
|
9,966 |
|
| Interest expense, net |
|
|
2,763 |
|
|
|
— |
|
|
|
— |
|
|
|
2,763 |
|
| EBITDA |
|
|
$ |
47,139 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(5,431 |
) |
|
|
$ |
36,605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of EBITDA to net cash from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) operating activities |
|
|
$ |
40,540 |
|
|
|
$ |
(5,056 |
) |
|
|
$ |
(5,873 |
) |
|
|
$ |
29,611 |
|
| Amortization of unfavorable contract liability to revenue |
|
|
1,956 |
|
|
|
— |
|
|
|
— |
|
|
|
1,956 |
|
| Amortization of deferred financing costs |
|
|
(560 |
) |
|
|
— |
|
|
|
— |
|
|
|
(560 |
) |
| Accretion of asset retirement obligations |
|
|
(108 |
) |
|
|
(55 |
) |
|
|
(6 |
) |
|
|
(169 |
) |
| Deferred taxes |
|
|
(42 |
) |
|
|
— |
|
|
|
— |
|
|
|
(42 |
) |
| Unit-based compensation expense |
|
|
(179 |
) |
|
|
— |
|
|
|
— |
|
|
|
(179 |
) |
| Changes in assets and liabilities |
|
|
2,222 |
|
|
|
8 |
|
|
|
448 |
|
|
|
2,678 |
|
| Income tax expense |
|
|
547 |
|
|
|
— |
|
|
|
— |
|
|
|
547 |
|
| Interest expense, net |
|
|
2,763 |
|
|
|
— |
|
|
|
— |
|
|
|
2,763 |
|
| EBITDA |
|
|
$ |
47,139 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(5,431 |
) |
|
|
$ |
36,605 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of distributable cash flow to EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
$ |
47,139 |
|
|
|
$ |
(5,103 |
) |
|
|
$ |
(5,431 |
) |
|
|
$ |
36,605 |
|
| Less: Cash interest expense, net |
|
|
2,203 |
|
|
|
— |
|
|
|
— |
|
|
|
2,203 |
|
| Less: Maintenance and regulatory capital expenditures |
|
|
2,988 |
|
|
|
3,132 |
|
|
|
1,406 |
|
|
|
7,526 |
|
| Less: Capital improvement expenditures |
|
|
630 |
|
|
|
1,130 |
|
|
|
554 |
|
|
|
2,314 |
|
| Add: Reimbursement from Delek for capital expenditures |
|
|
463 |
|
|
|
— |
|
|
|
— |
|
|
|
463 |
|
| Less: Income tax expense |
|
|
547 |
|
|
|
— |
|
|
|
— |
|
|
|
547 |
|
| Add: Non-cash unit-based compensation expense |
|
|
179 |
|
|
|
— |
|
|
|
— |
|
|
|
179 |
|
| Less: Amortization of deferred revenue |
|
|
154 |
|
|
|
— |
|
|
|
— |
|
|
|
154 |
|
| Less: Amortization of unfavorable contract liability |
|
|
1,956 |
|
|
|
— |
|
|
|
— |
|
|
|
1,956 |
|
| Distributable cash flow |
|
|
$ |
39,303 |
|
|
|
$ |
(9,365 |
) |
|
|
$ |
(7,391 |
) |
|
|
$ |
22,547 |
|
| |
|
(1) The information presented is for the three months ended September 30, 2013, disaggregated to present the results of operations of the Partnership and the Tyler and El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Balance Sheets (Unaudited) |
| |
| |
|
|
September 30, |
|
|
December 31, |
| |
|
|
2014 |
|
|
2013(1)
|
| |
|
|
|
|
|
|
|
|
| |
|
|
(In thousands) |
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
733 |
|
|
|
$ |
924 |
|
| Accounts receivable |
|
|
39,534 |
|
|
|
28,976 |
|
| Inventory |
|
|
9,825 |
|
|
|
17,512 |
|
| Deferred tax assets |
|
|
12 |
|
|
|
12 |
|
| Other current assets |
|
|
700 |
|
|
|
341 |
|
| Total current assets |
|
|
50,804 |
|
|
|
47,765 |
|
| Property, plant and equipment: |
|
|
|
|
|
|
|
|
| Property, plant and equipment |
|
|
267,421 |
|
|
|
265,388 |
|
| Less: accumulated depreciation |
|
|
(49,318 |
) |
|
|
(39,566 |
) |
| Property, plant and equipment, net |
|
|
218,103 |
|
|
|
225,822 |
|
| Goodwill |
|
|
11,654 |
|
|
|
10,454 |
|
| Intangible assets, net |
|
|
11,587 |
|
|
|
12,258 |
|
| Other non-current assets |
|
|
4,024 |
|
|
|
5,045 |
|
| Total assets |
|
|
$ |
296,172 |
|
|
|
$ |
301,344 |
|
| |
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
23,670 |
|
|
|
$ |
26,045 |
|
| Accounts payable to related parties |
|
|
9,486 |
|
|
|
1,513 |
|
| Fuel and other taxes payable |
|
|
5,562 |
|
|
|
5,700 |
|
| Accrued expenses and other current liabilities |
|
|
7,099 |
|
|
|
6,451 |
|
| Total current liabilities |
|
|
45,817 |
|
|
|
39,709 |
|
| Non-current liabilities: |
|
|
|
|
|
|
|
|
| Revolving credit facility |
|
|
230,000 |
|
|
|
164,800 |
|
| Asset retirement obligations |
|
|
3,260 |
|
|
|
3,087 |
|
| Deferred tax liabilities |
|
|
405 |
|
|
|
324 |
|
| Other non-current liabilities |
|
|
5,411 |
|
|
|
6,222 |
|
| Total non-current liabilities |
|
|
239,076 |
|
|
|
174,433 |
|
| Equity: |
|
|
|
|
|
|
|
|
| Predecessor division equity |
|
|
— |
|
|
|
25,161 |
|
| Common unitholders - public; 9,384,589 units issued and outstanding at September 30, 2014 (9,353,240 at December 31, 2013) |
|
|
191,479 |
|
|
|
183,839 |
|
| Common unitholders - Delek; 2,799,258 units issued and outstanding at September 30, 2014 (2,799,258 at December 31, 2013) |
|
|
(242,788 |
) |
|
|
(176,680 |
) |
| Subordinated unitholders - Delek; 11,999,258 units issued and outstanding at September 30, 2014 (11,999,258 at December 31, 2013) |
|
|
69,243 |
|
|
|
59,386 |
|
| General partner - Delek; 493,533 units issued and outstanding at September 30, 2014 (492,893 at December 31, 2013) |
|
|
(6,655 |
) |
|
|
(4,504 |
) |
| Total equity |
|
|
11,279 |
|
|
|
87,202 |
|
| Total liabilities and equity |
|
|
$ |
296,172 |
|
|
|
$ |
301,344 |
|
| |
|
(1) Includes the historical balances of the El Dorado Terminal and Tank Assets.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Income (Unaudited) |
| |
| |
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
| |
|
|
|
|
| |
|
|
2014 |
|
|
2013(2) |
|
|
2014(1)
|
|
|
2013(2)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
(In thousands, except unit and per unit data) |
| Net sales |
|
|
$ |
228,036 |
|
|
|
$ |
243,295 |
|
|
|
$ |
667,906 |
|
|
|
$ |
684,331 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
194,133 |
|
|
|
218,222 |
|
|
|
562,916 |
|
|
|
614,048 |
|
| Operating expenses |
|
|
10,213 |
|
|
|
8,973 |
|
|
|
29,076 |
|
|
|
27,982 |
|
| General and administrative expenses |
|
|
2,453 |
|
|
|
1,973 |
|
|
|
7,358 |
|
|
|
5,696 |
|
| Depreciation and amortization |
|
|
3,749 |
|
|
|
3,141 |
|
|
|
10,758 |
|
|
|
9,966 |
|
| Loss on asset disposals |
|
|
— |
|
|
|
— |
|
|
|
74 |
|
|
|
— |
|
| Total operating costs and expenses |
|
|
210,548 |
|
|
|
232,309 |
|
|
|
610,182 |
|
|
|
657,692 |
|
| Operating income |
|
|
17,488 |
|
|
|
10,986 |
|
|
|
57,724 |
|
|
|
26,639 |
|
| Interest expense, net |
|
|
2,226 |
|
|
|
1,194 |
|
|
|
6,551 |
|
|
|
2,763 |
|
| Net income before income tax expense |
|
|
15,262 |
|
|
|
9,792 |
|
|
|
51,173 |
|
|
|
23,876 |
|
| Income tax expense |
|
|
177 |
|
|
|
307 |
|
|
|
605 |
|
|
|
547 |
|
| Net income |
|
|
$ |
15,085 |
|
|
|
$ |
9,485 |
|
|
|
$ |
50,568 |
|
|
|
$ |
23,329 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(3,060 |
) |
|
|
(943 |
) |
|
|
(13,176 |
) |
| Net income attributable to partners |
|
|
15,085 |
|
|
|
12,545 |
|
|
|
51,511 |
|
|
|
36,505 |
|
| Comprehensive income attributable to partners |
|
|
$ |
15,085 |
|
|
|
$ |
12,545 |
|
|
|
$ |
51,511 |
|
|
|
$ |
36,505 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: General partner's interest in net income, including incentive distribution rights |
|
|
(598 |
) |
|
|
(250 |
) |
|
|
(1,511 |
) |
|
|
(729 |
) |
| Limited partners' interest in net income |
|
|
$ |
14,487 |
|
|
|
$ |
12,295 |
|
|
|
$ |
50,000 |
|
|
|
$ |
35,776 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per limited partner unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - (basic) |
|
|
$ |
0.60 |
|
|
|
$ |
0.51 |
|
|
|
$ |
2.07 |
|
|
|
$ |
1.49 |
|
| Common units - (diluted) |
|
|
$ |
0.59 |
|
|
|
$ |
0.51 |
|
|
|
$ |
2.05 |
|
|
|
$ |
1.48 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
$ |
0.60 |
|
|
|
$ |
0.51 |
|
|
|
$ |
2.07 |
|
|
|
$ |
1.49 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average limited partner units outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units - basic |
|
|
12,183,847 |
|
|
|
12,036,821 |
|
|
|
12,165,474 |
|
|
|
12,014,445 |
|
| Common units - diluted |
|
|
12,327,321 |
|
|
|
12,188,342 |
|
|
|
12,299,963 |
|
|
|
12,152,657 |
|
| Subordinated units - Delek (basic and diluted) |
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
|
|
11,999,258 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash distribution per limited partner unit |
|
|
$ |
0.490 |
|
|
|
$ |
0.405 |
|
|
|
$ |
1.390 |
|
|
|
$ |
1.185 |
|
| |
|
(1) The information presented includes the results of operations of the El Dorado Predecessor. Prior to the completion of the El Dorado acquisition on February 10, 2014, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
| |
|
(2) Adjusted to include the historical results of the El Dorado Terminal and Tank Assets.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets(1)
1/1/2014-2/10/2014
|
|
|
Nine Months Ended
September 30, 2014
|
| |
|
|
|
|
|
|
El Dorado Predecessor |
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
667,906 |
|
|
|
$ |
— |
|
|
|
$ |
667,906 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
562,916 |
|
|
|
— |
|
|
|
562,916 |
|
| Operating expenses |
|
|
28,293 |
|
|
|
783 |
|
|
|
29,076 |
|
| General and administrative expenses |
|
|
7,312 |
|
|
|
46 |
|
|
|
7,358 |
|
| Depreciation and amortization |
|
|
10,644 |
|
|
|
114 |
|
|
|
10,758 |
|
| Loss on asset disposals |
|
|
74 |
|
|
|
— |
|
|
|
74 |
|
| Total operating costs and expenses |
|
|
609,239 |
|
|
|
943 |
|
|
|
610,182 |
|
| Operating income (loss) |
|
|
58,667 |
|
|
|
(943 |
) |
|
|
57,724 |
|
| Interest expense, net |
|
|
6,551 |
|
|
|
— |
|
|
|
6,551 |
|
| Net income (loss) before income tax expense |
|
|
52,116 |
|
|
|
(943 |
) |
|
|
51,173 |
|
| Income tax expense |
|
|
605 |
|
|
|
— |
|
|
|
605 |
|
| Net income (loss) |
|
|
$ |
51,511 |
|
|
|
$ |
(943 |
) |
|
|
$ |
50,568 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(943 |
) |
|
|
(943 |
) |
| Net income attributable to partners |
|
|
$ |
51,511 |
|
|
|
$ |
— |
|
|
|
$ |
51,511 |
|
| |
|
(1) The information presented is a summary of our results of operations for the nine months ended September 30, 2014, disaggregated to present the results of operations of the El Dorado Predecessor. Prior to the completion of the El Dorado acquisition on February 10, 2014, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler
Terminal
and Tank
Assets(1)
|
|
|
El Dorado
Terminal
and Tank
Assets(1)
|
|
|
Three Months
Ended
September 30,
2013
|
| |
|
|
|
|
|
|
Tyler Predecessor |
|
|
El Dorado
Predecessor
|
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
243,295 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
243,295 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
218,222 |
|
|
|
— |
|
|
|
— |
|
|
|
218,222 |
|
| Operating expenses |
|
|
6,645 |
|
|
|
829 |
|
|
|
1,499 |
|
|
|
8,973 |
|
| General and administrative expenses |
|
|
1,782 |
|
|
|
86 |
|
|
|
105 |
|
|
|
1,973 |
|
| Depreciation and amortization |
|
|
2,600 |
|
|
|
244 |
|
|
|
297 |
|
|
|
3,141 |
|
| Total operating costs and expenses |
|
|
229,249 |
|
|
|
1,159 |
|
|
|
1,901 |
|
|
|
232,309 |
|
| Operating income (loss) |
|
|
14,046 |
|
|
|
(1,159 |
) |
|
|
(1,901 |
) |
|
|
10,986 |
|
| Interest expense, net |
|
|
1,194 |
|
|
|
— |
|
|
|
— |
|
|
|
1,194 |
|
| Net income (loss) before income tax expense |
|
|
12,852 |
|
|
|
(1,159 |
) |
|
|
(1,901 |
) |
|
|
9,792 |
|
| Income tax expense |
|
|
307 |
|
|
|
— |
|
|
|
— |
|
|
|
307 |
|
| Net income (loss) |
|
|
$ |
12,545 |
|
|
|
$ |
(1,159 |
) |
|
|
$ |
(1,901 |
) |
|
|
$ |
9,485 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(1,159 |
) |
|
|
(1,901 |
) |
|
|
(3,060 |
) |
| Net income attributable to partners |
|
|
$ |
12,545 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
12,545 |
|
| |
|
(1) The information presented is a summary of our results of operations for the three months ended September 30, 2013, disaggregated to present the results of operations of the Tyler and the El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Consolidated Statements of Income (Unaudited) |
| Reconciliation of Partnership to Predecessor |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Delek
Logistics
Partners, LP
|
|
|
Tyler Terminal
and Tank
Assets(1)
|
|
|
El Dorado
Terminal and
Tank Assets(1)
|
|
|
Nine Months
Ended
September 30,
2013
|
| |
|
|
|
|
|
|
Tyler Predecessor |
|
|
El Dorado
Predecessor
|
|
|
|
|
| |
|
|
(In thousands) |
| Net Sales |
|
|
$ |
684,331 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
684,331 |
|
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
614,048 |
|
|
|
— |
|
|
|
— |
|
|
|
614,048 |
|
| Operating expenses |
|
|
18,574 |
|
|
|
4,501 |
|
|
|
4,907 |
|
|
|
27,982 |
|
| General and administrative expenses |
|
|
4,570 |
|
|
|
602 |
|
|
|
524 |
|
|
|
5,696 |
|
| Depreciation and amortization |
|
|
7,324 |
|
|
|
1,750 |
|
|
|
892 |
|
|
|
9,966 |
|
| Total operating costs and expenses |
|
|
644,516 |
|
|
|
6,853 |
|
|
|
6,323 |
|
|
|
657,692 |
|
| Operating income (loss) |
|
|
39,815 |
|
|
|
(6,853 |
) |
|
|
(6,323 |
) |
|
|
26,639 |
|
| Interest expense, net |
|
|
2,763 |
|
|
|
— |
|
|
|
— |
|
|
|
2,763 |
|
| Other expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) before income tax expense |
|
|
37,052 |
|
|
|
(6,853 |
) |
|
|
(6,323 |
) |
|
|
23,876 |
|
| Income tax expense |
|
|
547 |
|
|
|
— |
|
|
|
— |
|
|
|
547 |
|
| Net income (loss) |
|
|
$ |
36,505 |
|
|
|
$ |
(6,853 |
) |
|
|
$ |
(6,323 |
) |
|
|
$ |
23,329 |
|
| Less: Loss attributable to Predecessors |
|
|
— |
|
|
|
(6,853 |
) |
|
|
(6,323 |
) |
|
|
(13,176 |
) |
| Net income attributable to partners |
|
|
$ |
36,505 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
36,505 |
|
| |
|
(1) The information presented is a summary of our results of operations for the nine months ended September 30, 2013, disaggregated to present the results of operations of the Tyler and the El Dorado Predecessors. Prior to the completion of the Tyler acquisition on July 26, 2013 and the El Dorado acquisition on February 10, 2014, the Predecessors did not record revenues for intercompany terminalling and storage services.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Condensed Consolidated Statements of Cash Flows (Unaudited) |
| (In thousands) |
| |
|
|
|
|
|
|
|
|
| |
|
|
Nine Months Ended
September 30,
|
| |
|
|
2014(1)
|
|
|
2013(2)
|
| |
|
|
|
|
|
|
|
|
| Cash Flow Data |
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
|
|
$ |
64,929 |
|
|
|
$ |
29,611 |
|
| Net cash used in investing activities |
|
|
(2,760 |
) |
|
|
(15,562 |
) |
| Net cash used in financing activities |
|
|
(62,360 |
) |
|
|
(30,789 |
) |
| Net decrease in cash and cash equivalents |
|
|
$ |
(191 |
) |
|
|
$ |
(16,740 |
) |
| |
|
(1) Includes the historical cash flows of the El Dorado Terminal and Tank Assets.
|
|
(2) Adjusted to include the historical cash flows of the El Dorado Terminal and Tank Assets.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
|
Three Months Ended September 30, 2014 |
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Net sales |
|
|
$ |
23,767 |
|
|
|
$ |
204,269 |
|
|
|
$ |
228,036 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
1,011 |
|
|
|
193,122 |
|
|
|
194,133 |
| Operating expenses |
|
|
7,676 |
|
|
|
2,537 |
|
|
|
10,213 |
| Segment contribution margin |
|
|
$ |
15,080 |
|
|
|
$ |
8,610 |
|
|
|
23,690 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
2,453 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
3,749 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
17,488 |
| Total Assets |
|
|
$ |
221,393 |
|
|
|
$ |
74,779 |
|
|
|
$ |
296,172 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and Maintenance capital spending |
|
|
$ |
362 |
|
|
|
$ |
115 |
|
|
|
$ |
477 |
| Discretionary capital spending |
|
|
142 |
|
|
|
208 |
|
|
|
350 |
| Total capital spending |
|
|
$ |
504 |
|
|
|
$ |
323 |
|
|
|
$ |
827 |
| |
| |
| |
| |
| |
|
|
Three Months Ended September 30, 2013(1)
|
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Net sales |
|
|
$ |
15,743 |
|
|
|
$ |
227,552 |
|
|
|
$ |
243,295 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
— |
|
|
|
218,222 |
|
|
|
218,222 |
| Operating expenses |
|
|
7,012 |
|
|
|
1,961 |
|
|
|
8,973 |
| Segment contribution margin |
|
|
$ |
8,731 |
|
|
|
$ |
7,369 |
|
|
|
16,100 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
1,973 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
3,141 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
10,986 |
| Total assets |
|
|
$ |
187,673 |
|
|
|
$ |
125,350 |
|
|
|
$ |
313,023 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and Maintenance capital spending |
|
|
$ |
1,797 |
|
|
|
$ |
484 |
|
|
|
$ |
2,281 |
| Discretionary capital spending |
|
|
387 |
|
|
|
33 |
|
|
|
420 |
| Total capital spending (2) |
|
|
$ |
2,184 |
|
|
|
$ |
517 |
|
|
|
$ |
2,701 |
| |
|
(1) The information presented includes the results of operations of our Predecessors. Prior to the Tyler acquisition and the El Dorado acquisition, our Predecessors did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $1.4 million incurred in connection with the assets acquired in the Tyler and El Dorado acquisitions.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Three Months Ended September 30, 2013 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Storage
Tank Assets
|
|
|
Predecessor -
El Dorado Storage
Tank Assets
|
|
|
Three Months Ended
September 30, 2013
|
| Net Sales |
|
|
$ |
15,743 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
15,743 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
| Operating expenses |
|
|
4,984 |
|
|
|
676 |
|
|
|
1,352 |
|
|
|
7,012 |
| Segment contribution margin |
|
|
$ |
10,759 |
|
|
|
$ |
(676 |
) |
|
|
$ |
(1,352 |
) |
|
|
$ |
8,731 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
772 |
|
|
|
$ |
293 |
|
|
|
$ |
1,119 |
|
|
|
$ |
2,184 |
| |
| |
| |
| |
| |
|
|
Three Months Ended September 30, 2013 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Terminal
Assets
|
|
|
Predecessor -
El Dorado
Terminal Assets
|
|
|
Three Months Ended
September 30, 2013
|
| Net Sales |
|
|
$ |
227,552 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
227,552 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
218,222 |
|
|
|
— |
|
|
|
— |
|
|
|
218,222 |
| Operating expenses |
|
|
1,661 |
|
|
|
153 |
|
|
|
147 |
|
|
|
1,961 |
| Segment contribution margin |
|
|
$ |
7,669 |
|
|
|
$ |
(153 |
) |
|
|
$ |
(147 |
) |
|
|
$ |
7,369 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
517 |
|
|
|
$ |
(1 |
) |
|
|
$ |
1 |
|
|
|
$ |
517 |
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2014(1)
|
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Net sales |
|
|
$ |
65,957 |
|
|
|
$ |
601,949 |
|
|
|
$ |
667,906 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
3,267 |
|
|
|
559,649 |
|
|
|
562,916 |
| Operating expenses |
|
|
22,420 |
|
|
|
6,656 |
|
|
|
29,076 |
| Segment contribution margin |
|
|
$ |
40,270 |
|
|
|
$ |
35,644 |
|
|
|
75,914 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
7,358 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
10,758 |
| Loss (gain) on disposal of assets |
|
|
|
|
|
|
|
|
|
|
74 |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
57,724 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and Maintenance capital spending |
|
|
$ |
1,335 |
|
|
|
$ |
739 |
|
|
|
$ |
2,074 |
| Discretionary capital spending |
|
|
319 |
|
|
|
367 |
|
|
|
686 |
| Total capital spending (2) |
|
|
$ |
1,654 |
|
|
|
$ |
1,106 |
|
|
|
$ |
2,760 |
| |
|
(1) The information presented includes the results of operations of the El Dorado Predecessor. Prior to the El Dorado acquisition, the El Dorado Predecessor did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $0.2 million incurred in connection with the assets acquired in the El Dorado acquisition.
|
| |
| |
| |
| |
|
|
Nine Months Ended September 30, 2013(1)
|
| |
|
|
Pipelines &
Transportation
|
|
|
Wholesale Marketing
& Terminalling
|
|
|
Consolidated |
| Net sales |
|
|
$ |
43,008 |
|
|
|
$ |
641,323 |
|
|
|
$ |
684,331 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
— |
|
|
|
614,048 |
|
|
|
614,048 |
| Operating expenses |
|
|
22,490 |
|
|
|
5,492 |
|
|
|
27,982 |
| Segment contribution margin |
|
|
$ |
20,518 |
|
|
|
$ |
21,783 |
|
|
|
42,301 |
| General and administrative expense |
|
|
|
|
|
|
|
|
|
|
5,696 |
| Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
9,966 |
| Loss (gain) on disposal of assets |
|
|
|
|
|
|
|
|
|
|
— |
| Operating income |
|
|
|
|
|
|
|
|
|
|
$ |
26,639 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Capital spending |
|
|
|
|
|
|
|
|
|
|
|
| Regulatory and Maintenance capital spending |
|
|
$ |
5,999 |
|
|
|
$ |
1,526 |
|
|
|
$ |
7,525 |
| Discretionary capital spending |
|
|
2,243 |
|
|
|
72 |
|
|
|
2,315 |
| Total capital spending (2) |
|
|
$ |
8,242 |
|
|
|
$ |
1,598 |
|
|
|
$ |
9,840 |
| |
|
(1) The information presented includes the results of operations of our Predecessors. Prior to the Tyler acquisition and the El Dorado acquisition, our Predecessors did not record revenues for intercompany terminalling and storage services.
|
|
(2) Capital spending includes expenditures of $6.2 million incurred in connection with the assets acquired in the Tyler and El Dorado acquisition.
|
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2014 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor - El
Dorado Storage Tank
Assets 1/1/2014 -
2/10/2014
|
|
|
Nine Months Ended
September 30, 2014
|
| Net Sales |
|
|
$ |
65,957 |
|
|
|
$ |
— |
|
|
|
$ |
65,957 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
3,267 |
|
|
|
— |
|
|
|
3,267 |
| Operating expenses |
|
|
21,739 |
|
|
|
681 |
|
|
|
22,420 |
| Segment contribution margin |
|
|
$ |
40,951 |
|
|
|
$ |
(681 |
) |
|
|
$ |
40,270 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,441 |
|
|
|
$ |
213 |
|
|
|
$ |
1,654 |
| |
| |
| |
| |
| |
|
|
Nine Months Ended September 30, 2014 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor - El
Dorado Terminal
Assets 1/1/2014 -
2/10/2014
|
|
|
Nine Months Ended
September 30, 2014
|
| Net Sales |
|
|
$ |
601,949 |
|
|
|
$ |
— |
|
|
|
$ |
601,949 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
559,649 |
|
|
|
— |
|
|
|
559,649 |
| Operating expenses |
|
|
6,554 |
|
|
|
102 |
|
|
|
6,656 |
| Segment contribution margin |
|
|
$ |
35,746 |
|
|
|
$ |
(102 |
) |
|
|
$ |
35,644 |
| |
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,142 |
|
|
|
$ |
(36 |
) |
|
|
$ |
1,106 |
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| (In thousands) |
| |
| |
|
|
Nine Months Ended September 30, 2013 |
| |
|
|
Pipelines & Transportation |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Storage
Tank Assets
|
|
|
Predecessor -
El Dorado Storage
Tank Assets
|
|
|
Nine Months Ended
September 30, 2013
|
| Net Sales |
|
|
$ |
43,008 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
43,008 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
| Operating expenses |
|
|
14,332 |
|
|
|
3,861 |
|
|
|
4,297 |
|
|
|
22,490 |
| Segment contribution margin |
|
|
$ |
28,676 |
|
|
|
$ |
(3,861 |
) |
|
|
$ |
(4,297 |
) |
|
|
$ |
20,518 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
2,265 |
|
|
|
$ |
4,248 |
|
|
|
$ |
1,729 |
|
|
|
$ |
8,242 |
| |
| |
| |
| |
| |
|
|
Nine Months Ended September 30, 2013 |
| |
|
|
Wholesale Marketing & Terminalling |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
Predecessor -
Tyler Terminal
Assets
|
|
|
Predecessor -
El Dorado
Terminal Assets
|
|
|
Nine Months Ended
September 30, 2013
|
| Net Sales |
|
|
$ |
641,323 |
|
|
|
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
641,323 |
| Operating costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of goods sold |
|
|
614,048 |
|
|
|
— |
|
|
|
— |
|
|
|
614,048 |
| Operating expenses |
|
|
4,242 |
|
|
|
640 |
|
|
|
610 |
|
|
|
5,492 |
| Segment contribution margin |
|
|
$ |
23,033 |
|
|
|
$ |
(640 |
) |
|
|
$ |
(610 |
) |
|
|
$ |
21,783 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total capital spending |
|
|
$ |
1,353 |
|
|
|
$ |
15 |
|
|
|
$ |
230 |
|
|
|
$ |
1,598 |
| |
| |
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
|
|
|
|
|
|
| |
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
| Throughputs (average bpd) |
|
|
2014 |
|
|
2013 |
|
|
2014(1) |
|
|
2013 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
57,254 |
|
|
47,675 |
|
|
47,098 |
|
|
47,331 |
| Refined products pipelines to Enterprise Systems |
|
|
65,439 |
|
|
52,301 |
|
|
52,490 |
|
|
47,691 |
| SALA Gathering System |
|
|
22,258 |
|
|
21,921 |
|
|
22,221 |
|
|
22,236 |
| East Texas Crude Logistics System |
|
|
4,361 |
|
|
10,148 |
|
|
6,181 |
|
|
24,104 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
59,659 |
|
|
61,698 |
|
|
61,097 |
|
|
55,988 |
| West Texas marketing throughputs (average bpd) |
|
|
17,923 |
|
|
18,966 |
|
|
17,132 |
|
|
18,206 |
| West Texas marketing margin per barrel |
|
|
$ |
2.20 |
|
|
$ |
1.63 |
|
|
$ |
4.09 |
|
|
$ |
2.41 |
| Terminalling throughputs (average bpd) |
|
|
95,024 |
|
|
74,024 |
|
|
94,656 |
|
|
73,996 |
| |
|
(1) The information presented includes the throughput from operations of the El Dorado Predecessor.
|
| |
| |
| |
| |
| Delek Logistics Partners, LP |
| Segment Data (Unaudited) |
| |
| |
|
|
Delek Logistics
Partners, LP
|
|
|
El Dorado Terminal
and Tank Assets(1)
1/1/14-2/10/2014
|
|
|
Nine Months
Ended
September 30, 2014
|
| Throughputs (average bpd) |
|
|
|
|
|
El Dorado Predecessor |
|
|
|
| Pipelines and Transportation Segment: |
|
|
|
|
|
|
|
|
|
| Lion Pipeline System: |
|
|
|
|
|
|
|
|
|
| Crude pipelines (non-gathered) |
|
|
47,098 |
|
|
— |
|
|
47,098 |
| Refined products pipelines to Enterprise Systems |
|
|
52,490 |
|
|
— |
|
|
52,490 |
| SALA Gathering System |
|
|
22,221 |
|
|
— |
|
|
22,221 |
| East Texas Crude Logistics System |
|
|
6,181 |
|
|
— |
|
|
6,181 |
| |
|
|
|
|
|
|
|
|
|
| Wholesale Marketing and Terminalling Segment: |
|
|
|
|
|
|
|
|
|
| East Texas - Tyler Refinery sales volumes (average bpd) |
|
|
61,097 |
|
|
— |
|
|
61,097 |
| West Texas marketing throughputs (average bpd) |
|
|
17,132 |
|
|
— |
|
|
17,132 |
| West Texas marketing margin per barrel |
|
|
$ |
4.09 |
|
|
$ |
— |
|
|
$ |
4.09 |
| Terminalling throughputs (average bpd) |
|
|
95,016 |
|
|
7,298 |
|
|
94,656 |
| |
|
(1) The information presented includes the throughput from operations for the nine months ended September 30, 2014, disaggregated to present the results of the El Dorado Terminal and Tank Assets through February 10, 2014.
|
| |
| |
| |
Source: Delek Logistics Partners, LP
Delek Logistics Partners, LP
Keith Johnson, 615-435-1366
Vice President of Investor Relations
or
Alpha IR Group
Chris Hodges, 312-445-2870
Founder & CEO